Spatial variations and clustering in the rates of youth unemployment and NEET

We investigate the ‘determinants’ of spatial variations in youth unemployment and NEET rates, and the presence of spatial clusters, for Italy, Spain and the UK. Using Labour Force Survey data for the period 1993-2011 at a ‘regional’ level we obtain broadly consistent measures of quarterly youth unemployment and NEET rates. Our findings suggest that youths are sensitive to aggregate labour market conditions with older youths being more cyclically sensitive than are teenagers. We find a discouraged worker effect, again larger for older youths than for teenagers. In the UK and Spain, temporary jobs are preferred to part-time jobs, perhaps as a way of avoiding unemployment, whereas in Italy the opposite occurs. There is evidence of spatial clustering of youth unemployment and NEET rates. Our paper concludes with a discussion of the implications for regional and labour market policies.